Net Worth – Jan 2008 January 31, 2008
Posted by pf in Net Worth Update.Tags: average net worth, CD, certificate of deposit, Credit Card, debt, january, net worth, stock market, what should my net worth be
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Welcome to the first net worth update of 2008. It is no surprise to anyone that the new year has not gotten off to a good start. Amazingly, it was only 2 short months ago that my equities portfolio hit a high of ~$252,000. Fast forward to now and we sit at ~$241,000…and that includes both the additional investment I made (couple of thousand) and the recent gains over the last few days (several more thousand).
However, I’m not overly pessimistic…yet. I have created a couple of CDs that will yield over 5% for the next 12 months, and with any luck, likely to get some additional cash infusions in the coming months (tax return, bonus, etc). Also, I found myself with a little additional cash this month which softened the blow a bit with a decrease in my net worth of only -$3327.
Subprime Bailout: New Proposal January 31, 2008
Posted by pf in Expenses and Savings.Tags: bailout, default, dodd, foreclosure, mortgage, subprime, taxpayer
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I just read about a new subprime bailout posted on CNNMoney.com. Essentially, what is being proposed is the creation of a Homeownership Preservation Corporation that would buy mortgage securities that are collaterlized with at-risk, subprime loans.
The kicker is that to get this fund going, it would require $20-25 BILLION dollars from taxpayers to get it going.
I’m sure it’s in the early going yet, but I see no reason whatsoever for government intervention…and especially not with taxpayer money. NONE.
Here’s the link:
New $20B subprime bailout on the table
Fed Cuts Rates Again January 30, 2008
Posted by pf in Expenses and Savings.Tags: Bernanke, CD, certificate of deposit, debt, fed, mortgage, rate cut
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Well, not unexpectedly, the Fed cut rates again by another 1/2 point. Admittedly, I’m feeling quite pleased with myself having opened up those 2 CDs these last couple of months (Fed Emergency Rate Cut…I Made a Move). Of course, these rate reductions were not without cause, and the losses to my portfolio due to the tanking stock market quickly wipes the little smirk off my face.
So, what’s next? I suspect the Fed will pause for awhile and see what transpires. The rate reductions will take quite a few months before we’re able to determine what effect they had. In particular, there are still mixed signals about the economy (recession or no?) including upticks in inflation.
My Personal Finance Odyssey 